Why Mondelez’s Dividend Stands Strong in Uncertain Markets

Mondelez International, Inc. (NASDAQ:MDLZ) is one of the best dividend stocks for a bear market.

Mondelez International, Inc. (NASDAQ:MDLZ) ranks among the top global snack makers and belongs to the consumer staples sector. During economic downturns, consumers typically continue buying food at consistent levels, and even tend to favor discounted options more, making large food companies like Mondelez appealing, especially when spending declines in more discretionary areas.

A colourful array of products like candies, chocolates and gums on a supermarket shelf.

Another reason investors are drawn to Mondelez International, Inc. (NASDAQ:MDLZ) is its strong dividend and reliable cash flow. In the latest quarter, the company generated $1.1 billion in operating cash flow and $0.8 billion in free cash flow, while returning $2.1 billion to shareholders through dividends and buybacks.

Mondelez International, Inc. (NASDAQ:MDLZ) has also garnered attention on the dividend front. The company has been rewarding shareholders with growing dividends for the past 11 consecutive years. It offers a quarterly dividend of $0.47 per share and has a dividend yield of 2.83%

The company has expressed confidence in its future earnings potential, which may support the strength and stability of its dividend payments. It has reaffirmed its outlook for the year, expecting organic net revenue to grow by around 5%. However, adjusted earnings per share are projected to decline by roughly 10% on a constant currency basis, mainly due to an unusual surge in cocoa prices. Despite this, the company anticipates generating over $3 billion in free cash flow for 2025.

Since recessions often go hand in hand with falling stock markets, investors with shorter time horizons may find value in holding companies that offer steady or growing dividend yields.

While we acknowledge the potential of MDLZ as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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